Tribune Media (NYSE: TRCO) and TiVo (NASDAQ:TIVO) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Insider & Institutional Ownership

90.8% of Tribune Media shares are held by institutional investors. Comparatively, 90.3% of TiVo shares are held by institutional investors. 0.6% of Tribune Media shares are held by company insiders. Comparatively, 3.6% of TiVo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Tribune Media and TiVo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tribune Media 1 4 1 0 2.00
TiVo 0 0 4 0 3.00

Tribune Media presently has a consensus price target of $43.88, suggesting a potential upside of 5.09%. TiVo has a consensus price target of $24.25, suggesting a potential upside of 50.15%. Given TiVo’s stronger consensus rating and higher probable upside, analysts clearly believe TiVo is more favorable than Tribune Media.

Profitability

This table compares Tribune Media and TiVo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tribune Media -6.12% 4.11% 1.50%
TiVo -5.39% 4.72% 2.73%

Valuation and Earnings

This table compares Tribune Media and TiVo’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tribune Media $1.95 billion 1.87 $14.24 million ($1.33) -31.39
TiVo $649.09 million 3.04 $32.66 million ($0.39) -41.41

TiVo has lower revenue, but higher earnings than Tribune Media. TiVo is trading at a lower price-to-earnings ratio than Tribune Media, indicating that it is currently the more affordable of the two stocks.

Dividends

Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. TiVo pays an annual dividend of $0.72 per share and has a dividend yield of 4.5%. Tribune Media pays out -75.2% of its earnings in the form of a dividend. TiVo pays out -184.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TiVo is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Tribune Media has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, TiVo has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500.

Summary

TiVo beats Tribune Media on 12 of the 16 factors compared between the two stocks.

Tribune Media Company Profile

Tribune Media Company, through its subsidiaries, operates as a media and entertainment company in the United States. It offers news, entertainment, and sports programming through Tribune Broadcasting local television stations, including FOX television affiliates, CW Network, LLC television affiliates, CBS television affiliates, ABC television affiliates, NBC television affiliates, and independent television stations; and television series and movies on WGN America, a national general entertainment cable network. The company also operates Antenna TV and THIS TV, a digital multicast networks; Tribune Studios, a development and production studio; Screener, an entertainment Website; and WGN 720 AM, a radio station in Chicago. It owns and operates 42 local television stations. The company was formerly known as Tribune Company and changed its name to Tribune Media Company in July 2014. Tribune Media Company was founded in 1847 and is based in Chicago, Illinois.

TiVo Company Profile

TiVo Corporation is engaged in offering media and entertainment products. The Company operates through two segments: Intellectual Property Licensing and Product. The Company’s Product segment includes a suite of component technologies that can be integrated into media service provider internally developed platforms or deployed as an integrated TiVo solution. The Company provides a range of intellectual property, cloud-based services and set-top box solutions that enable people to use online video, television, movies and music entertainment, including content discovery through device embedded and cloud-based interactive program guides (IPGs), digital video recorders (DVRs), natural language voice and text search, cloud-based recommendations services and its entertainment metadata (descriptive information, promotional images or other content that describes or relates to television shows, videos, movies, sports, music, books, games or other entertainment content).

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